Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 


SummaryMost relevantAll NewsOther languagesMarketScreener Strategies

Gold rises as U.S. Treasury yields, dollar pause

04/20/2021 | 01:00pm EDT
Gold bars are pictured on display at Korea Gold Exchange in Seoul

(Reuters) - Gold gained on Tuesday as a rise in U.S. Treasury yields stalled and the dollar steadied near multi-week lows.

Spot gold was up 0.4% to $1,775.46 per ounce by 11:36 a.m. EDT (1536 GMT), after hitting $1,789.77 on Monday, its highest level since Feb. 25.

U.S. gold futures climbed 0.3% to $1,775.60.

U.S. Treasury yields eased and held in a narrow range as investors awaited further market developments, while the dollar index steadied near its lowest level in about seven weeks.

"Gold's recent upward momentum has been driven by the fact that bonds are well bid and the USD is under pressure," said Tai Wong, head of base and precious metals derivatives trading at BMO.

"Gold is likely to hold in the new range of $1,760-$1,810 until we get another clear market driver. We may need to wait for the FOMC (Federal Open Market Committee) and see if there's a change in tone as well as how the next round of Treasury auctions go, but, overall bonds feel in demand," Wong added.

The U.S. central bank's rate-setting FOMC will hold its next policy meeting April 27-28.

Gold, considered a hedge against inflation given the unprecedented stimulus doled out by central banks, has been in a tussle with yields, since higher yields translate into a higher opportunity cost of holding the non-interest bearing bullion.

Gold can still move higher as "there is too much liquidity in the market and it is going to stay that way for quite some time, even though we have got the green shoots of recovery looking quite strong in certain regions," StoneX analyst Rhona O'Connell said.

On a technical note, gold's failure to break resistance at $1,785 may drive it back to a range of $1,744 to $1,758, Reuters technical analyst Wang Tao said.

Silver was little changed at $25.82 per ounce, palladium dropped 2.6% to $2,738.60 and platinum slipped 1.6%, to $1,187.63.

(Reporting by Nallur Sethuraman and Sumita Layek in Bengaluru; Editing by Mark Potter, Susan Fenton and Paul Simao)

By Arpan Varghese

© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
GOLD -0.11% 1865.41 Delayed Quote.-1.28%
All news about GOLD
06/14Gold down for third day as dollar firms ahead of Fed meeting
06/14Gold down for 3rd day as dollar firms ahead of Fed meeting
06/14Gold little changed as markets await U.S. Fed meeting
06/14UPDATE : Gold Falls to a Month Low as Bond Yields Rise, Fed Meeting Anticipated
06/14August Gold Contract Ends Down US$13.70; Settles at US$1,865.90 per Ounce
06/14Comex Gold Settles 0.71% Lower at $1864.00 -- Data Talk
06/14MIDDAY ETF UPDATE : Broad-Market ETFs Lower; US Stocks Mixed Ahead of Fed's Mone..
06/14Gold slips as investors fear U.S. Fed taper hints
06/14TSX dips as losses in miners, dismal manufacturing data weigh
06/14CORRECT  : Burkina Faso Closes Artisanal Gold Mining Sites After Jihadist Killin..
More news
Chart GOLD
Duration : Period :
Gold Technical Analysis Chart | XAUUSD | MarketScreener
Technical analysis trends GOLD
Short TermMid-TermLong Term